Hyundai offers unique take-back in case of job loss

06 January 2009

To beat the slump in car sales, fuelled by the uncertain economic out look and growong job losses, Hyundai Motor America has unveiled a novel approach to the recession-hit US customers.

Dubbed the Hyundai Assurance Program, the South Korean automaker said that people who finance or lease a new Hyundai during the next 12 months can return the car if they ''experience an involuntary loss of income'' within one year of the purchase date.

Hyundai Motor America has entered an agreement with Walkaway USA, LLC, to offer consumers this financial protection in the event of thi losing their jobs and are unable to repay their installmentson the purchase.

Hyundai said it would absorb up to $7,500 in negative equity (the difference between what a vehicle is worth and what is owed on it) for buyers who opt to walk away from their loans. Customers who pay cash for their vehicles don't qualify for the programme.

Hyundai says buyers can return a vehicle for no extra charge within 12 months of purchase if any of the following occurs:

• Involuntary job loss
• Physical disability
• Loss of driver's license for medical reasons
• Job transfer overseas
• Personal bankruptcy filing by a self-employed worker
• Accidental death

To qualify, buyers must have made at least two scheduled payments on the loan or lease and be current on the payments, as well as pay the amount over the $7,500 negative-equity threshold. The value of the vehicle will be determined by the dealer, who will be allowed to re-sell the vehicle, Hyundai said.